Helmerich & Payne (HP) Inks Rig Enablement Framework With ADNOC
The Rig Enablement Framework Agreement will allow Helmerich & Payne (HP) to extend its drilling and operating experience outside the United States.
Helmerich & Payne, Inc. HP recently announced that the Rig Enablement Framework Agreement with ADNOC Drilling Company is finalized.
The Framework Agreement will allow HP to extend its drilling and operating experience outside the United States. It will help ADNOC Drilling improve the performance of its land rigs and support the company's aggressive development and expansion objectives. Further, the agreement, which focuses on enhancing drilling efficiencies and achieving operational savings, expands on the Asset Purchase Agreement and IPO Cornerstone Agreement announced on Sep 8, 2021, and strengthens ADNOC Drilling's strategic collaboration with HP.
HP’s $100-million cornerstone investment in ADNOC Drilling's IPO aided its worldwide expansion plan by allowing it to commit extra cash outside the United States. This demonstrates HP's faith in what the two companies can accomplish together.
Helmerich & Payne, a global leader in rig technologies and drilling solutions, intends to profit from ADNOC Drilling's commitment to a strong dividend policy as indicated in the ADNOC Drilling Prospectus.
With the signing of the Rig Enablement Framework Agreement, HP will be able to further strengthen their strategic partnership by combining their strengths to offer a superior operational performance.
Earlier in September, Helmerich & Payne announced a strategic collaboration with ADNOC and its subsidiary ADNOC Drilling Company wherein ADNOC Drilling will purchase eight FlexRig® land rigs from Helmerich & Payne for $86.5 million.
The above deal will help Helmerich & Payne achieve its goal of deploying capital worldwide, especially to the MENA (Middle East and North Africa) area, by boosting its entry into the lucrative and rapidly-rising Abu Dhabi market as a vital platform for further regional expansion.
Zacks Rank & Key Picks
Helmerich & Payne currently has a Zacks Rank #3 (Hold). Investors interested in the energy sector might look at the following stocks with a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
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Sunoco LP SUN is a master limited partnership that engages in distributing motor fuel to roughly 10,000 customers, including independent dealers, commercial customers, convenience stores and distributors. In the United States, Sunoco is among the largest motor fuel distributors in the wholesale market by volume. In 2020, the partnership sold 7.1 billion gallons of motor fuel.
SUN's earnings for 2021 are expected to surge 743.4% year over year. Sunoco currently has a Zacks Style Score of A for both Value and Growth. For 2021, SUN expects fuel volumes of 7.25-7.75 billion gallons, indicating a rise from the 2020 reported level of 7.09 billion gallons.
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